Nitta Gelatin( Formerly Kerala Chemicals) is a 46 % subsidiary of Japan based Nitta Glatin Inc.Kerala State Industrial Development Corporation (KSIDC) is the joint promoter with 34% stake .Company is manufacturing Edible and Pharmaceutical grade Gelatine,Ossein,Di Calcium Phospate ..etc.Company along with its subsidiary having three manufacturing facilities in India – Two in Kerala and One in Maharastra.Its products are mainly used in the processing of Confectionery,Diary products ,Beverages and for manufacturing gelatine Capsules.Last year company diversified into value added products like GELIXER COLLAGENPEP , SEEDAID, NUTRIGOLD, MEAT MEAL, CHITOSAN..etc . Due to unprecedented rise in its raw materials (Crushed Bone and Hydrochloric Acid ) and increased advertisement cost for new products, company reported lower profit in last year .But now it is slowly coming out of red and posted good profit in latest quarter by passing on its increased raw material cost to consumers and successful diversification into value added products..Due to pollution issues chances of substantial new capacity addition is very low in the country.For the latest quarter ended March 2012, Nitta posted a turnover of Rs.68.73 Cr v/s Rs.49 Cr and a net profit of Rs.4.57 Cr (excluding other income) v/s a loss of Rs.1.67 Cr .For the full year Consolidated EPS is Rs.5.58/-. If company can exhibit the same performance shown in latest quarter,chances for strong re rating can’t be ruled out for this investor friendly company from current level of Rs.87/-
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